Federal Reserve Director speaks

The following link is a testimony of Louise L. Roseman, Director, Division of Reserve Bank Operations and Payment Systems Coin and currency issues before the Subcommittee on Domestic and International Monetary Policy, Trade, and Technology, Committee on Financial Services, U.S. House of Representatives held on July 19, 2006.

It’s a rather long read, and some of it is quite boring, but I thought you might like to have a short summary of what happened.

There were three major topics discussed.

  1. The role of the Federal Reserve
  2. New Currency Design
  3. The new Presidential $1 coin program

First, the role of the Federal Reserve. They buy coins from the US Mint at face value, and distribute them to the public, trying to make sure there is enough currency and coins to meet demand. The value of U.S. coins in circulation as of May 31, 2006, was approximately $37 billion, or about 5 percent of total currency and coin in circulation.

Next, the new currency design. Personal computer counterfeiting has increased dramatically and they’re trying to work on reducing its frequency. Overall, counterfeiting is very low, but they want to make sure it doesn’t increase.

Lastly, the new dollar coin program. In 2007 there will be 4 presidential designs a year of a dollar coin. They’ve consulted all sorts of people (coin collectors included) in order to help them make it a success (unlike the Susan B. Anthony and Sacagawea dollars). She then lists ways in which they’re going to make it work.

I hope it ends up well.

(via Federal Reserve)

Category - Informative
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